Trump’s Tariffs Send Shockwaves Through Energy and Metals Markets

This morning, prices took a nosedive as the Trump administration announced reciprocal tariffs, causing gold prices to soar to new heights.

Energy Sector Hit Hard

Oil prices plummeted in response to the tariffs, with WTI dropping over 3% and trading below US$70/bbl. President Trump’s tariffs, set to take effect in early April, will impact global demand and create uncertainty as markets wait to see how trading partners will react.

Meanwhile, OPEC+ is considering increasing production targets, potentially offsetting the impact of the tariffs on oil prices.

Metals Shine Amidst Uncertainty

Gold prices surged to record levels following the tariff announcement, reaching nearly US$3,170/oz. While the tariffs raise global growth concerns, the exemption of certain metals like gold provides some relief to the market.

Analysis: The implementation of reciprocal tariffs by the Trump administration has sent shockwaves through the energy and metals markets. Oil prices have taken a hit, while gold prices have soared. The uncertainty surrounding trading partner reactions and global demand concerns will continue to impact these markets in the near future. Investors should closely monitor developments and adjust their portfolios accordingly to navigate these turbulent times.